BTS Group (BTS) Q2 2024 earnings summary

Executive summary

• Group sales grew 3% year-over-year in Q2 2024 to MSEK 730, with EBITA up 4% to SEK 110 million and a stable margin of 15.1%, despite a 23% revenue decline in Europe.

• For H1 2024, net sales were MSEK 1,348 (+5% currency-adjusted), EBITA rose 10% to MSEK 169, and profit after tax increased 36% to MSEK 114, driven by strong North America and Other Markets.

• North America and Other Markets delivered double-digit growth, while Europe saw declines due to project delays and cost freezes.

• Two acquisitions were completed: Wonderway (AI sales enablement) and a leading Thai organizational development firm (SEAC), expanding AI and Southeast Asia presence.

• Margins remained solid at 15.1%, and profit after tax was stable.

Financial highlights

• Q2 2024 EBITA margin held at 15.1%; net profit after tax was MSEK 60, with EPS at SEK 3.11.

• Combined EBITDA for North America and Other Markets increased 23% year-over-year.

• Cash flow from operating activities for H1 2024 was MSEK 17, a significant improvement from -99 MSEK in H1 2023.

• Net debt at period end was MSEK -76, with an equity ratio of 46%.

• The Thai acquisition contributed SEK 6 million in revenue last year.

Outlook and guidance

• 2024 EBITA/EBITDA is expected to exceed 2023 levels; outlook remains unchanged.

• Europe is expected to return to low single-digit growth in the second half, with project delays pushed to later in the year.